DECC Electricity Demand Reduction announcement

The Department of Energy & Climate Change – DECC – has announced that it has tabled amendments to the Energy Bill so that permanent reductions in electricity demand could be delivered through the Capacity Market.

Under the proposals, those who install measures that deliver permanent reductions in the amount of electricity they use could receive financial incentives.  Government is exploring whether to test the proposed approach via a pilot in order to gather evidence that will inform final decisions on an incentive.

This decision follows a consultation (launched in November 2012) to explore what more can be done to reduce electricity demand as part of DECC’s mission to realise the energy efficiency potential in the UK economy, as set out in their Energy Efficiency Strategy.

This is hugely positive and clearly shows that change can happen.

Let’s see how the structural Energy Efficiency Tariff will pan out in the pilot.

Read the full Government response to the consultation here